CANADA — As this year’s harvest draws to a close, Farm Credit Canada foresees “excellent” prices for the 2022-23 crop-marketing year in soybeans, canola, lentils and durum wheat. While well above the 5-year price average, the current period will fall short of the highs for those commodities seen in 2021-22, FCC predicts in its final quarterly update on the current crop year.
In eastern Canada, the picture for corn and soybeans is also positive. Winter wheat will face more pressure but also retains a positive outlook, according to FCC.
A good harvest this season in the northern hemisphere was needed to help fill high global demand for most crops. “That has happened but only to a certain extent across major field crop production this year,” FCC points out.
Looking forward to next cropping season, FCC projects a continued rise in farmer input costs, including fertilizer, though at a slower rate. “But the pain will continue,” it says.
A weaker global economy — especially in China — could reduce demand and see commodity prices continue their slide from the highs of the first half of 2022, according to FCC. Reports of strong crops in Russia, China and South America may likewise weaken prices in the coming months, although FCC expects large forecasted crop declines in Europe, alongside continued demand, will keep prices strong.